Automatic Restore Option in Health Insurance

What is Restore Option?

Now days a concept of “Restore” is introduced to the health insurance products. Under this option the sum insured is reinstated (restore) after it has been exhausted before a policy year ends.

Let’s see an example:

Mr x has a family floater health insurance plan with Restore option that covers him and his wife for 3lacs.

If the 1st claim is registered for Rs3.5 lacs for the CABG (bypass) for Mr X, Rs 3.0 can be claimed, however the sum assured will be fully restored. And can be used for any illness/disease except for both (except for CABG for Mr x).

At present stand alone health insurance companies such as Star health and Allied Insurance and Apollo Munich Health Insurance are offering this facility to their customers. However, both these companies are providing this facility to policyholders who have chosen sum insured of Rs 3 lakh or more.

Advantages:

Keep a family secure even if the main policy is exhausted. Restore option is free and does not requires any additional paper works.

Disadvantages:

Restore option is available for plans with sum assured 3 lacs and above so there are very less probability to exhaust the main policy and trigger the Restore, especially for young policy holders.